A Chinese court ruled that companies cannot fire workers merely to replace them with artificial intelligence systems, as officials combine the need to stabilize the domestic labor market with a global race to develop AI technologies.The court decided that a tech firm in eastern China had illegally fired one of its employees after he refused to accept a demotion when his job was automated by AI, according to a statement from the Hangzhou Intermediate People’s Court. “The grounds for termination cited by the company did not fall within negative circumstances such as a decline in business or operational difficulties, nor did they meet the legal condition that made it ‘impossible to continue the employment contract,'” the court said in an April 28 article.Citing the same case, the court said in a separate statement that due to technological advancement, companies cannot unilaterally fire employees or cut salaries.Chinese companies are rushing to implement AI systems as part of a state-directed effort to dominate the technology. At the same time, Chinese Communist Party planners have signaled a desire to prioritize stability in the labor market as the country’s economy slows and youth unemployment rises. (Bloomberg)
